Toys R Us in administration today

Toys R Us is likely to go into administration as it has been unable to pay its £15m VAT bill and the no last minute investors have come forward with fresh capital.

Officials from the Pension Protection Fund (PPF), Toys R Us UK's biggest unsecured creditor, were notified late last week of the impending insolvency amid fading hopes of a rescue deal.

Toys R Us UK trades from more than 100 stores, and only made it through the Christmas period after a company voluntary arrangement was agreed with with its landlords to try and ease cashflow.

It is not really surprising that Toys R Us has suffered as children almost buy their own toys on their parent's Ipads these days! Online sales have increased 30% in this last year alone. Also as Toys R Us sell well known brands like Barbie and Lego these are easily found online.

RBS has also announced its closure of a quarter of its retail estate as banking shifts online as well.

Toys 'R' Us's UK operations are understood to have been loss-making in seven of the last eight financial years.

Accounts for the year to January show turnover of £418m, on which it made an operating loss of £0.5m.

Watch the video below to find out your rights as an employee of Toys R Us

This video will explain your rights as an employee if the business you work for has become insolvent. This is a worrying time and for further information please refer to ourguide for employeeson our website. At the end of the video there is a link to the government website which explains things further.

Just a quick note to say a big thank you to all the staff at KSA, our CVA was passed today by creditors voting in an overwhelming number including HMRC to accept the proposal as prepared by KSA.

The road to reach today’s conclusion has been bumpy, but at each stage your team has supported and guided us through the issues and we have reached a very satisfactory outcome to the benefit of customers, staff, all creditors and shareholders.